Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of - Assessment year 1989-90 - Whether Tribunal being subordinate to High Court has to follow decision of jurisdictional High Court without making any comment upon said decision or/and without ignoring it on any grounds except those which are well recognized; it has no jurisdiction to ignore decision of High Court on ground that it did not take into consideration a particular provision of law or that it did not lay down correct principles of law on issue involved therein - Held, yes FACTS The Tribunal, by impugned order, allowed the appeal of the revenue ignoring the decision of the jurisdictional High Court in CIT v. Premier Industries (P.) Ltd. [1997] 227 ITR 282 / 93 Taxman 214 on the ground that the High Court had not taken into account the retrospective amendment made to section 143(1A) in that decision. On reference : HELD It is neither permissible nor legal for any Court and Tribunal to comment upon the decision of the Supreme Court/High Court. Similarly, it is also not permissible for the Tribunal to comment upon the manner in which a particular decision was rendered by the Supreme Court/High Court. It is also not permissible for the Tribunal to sidetrack or/and ignore the decision of the High Court on the ground that it did not take into consideration a particular provision of law. If such an approach is resorted to by subordinate Courts/Tribunals, then it is held to be not in conformity with the law laid down by the Supreme Court. It was deprecated by the Supreme Court as being improper. [Para 19] When the High Court has no jurisdiction to comment upon any decision of the Supreme Court nor the High Court has a power to ignore such decision by virtue of mandate contained in article 141 of the Constitution, then on the same reasoning, the Tribunal, being subordinate to the High Court, has to follow the decision of the jurisdictional High Court without making any comment upon the said decision or/and without ignoring it on any grounds except those which are well-recognized as indicated herein below. In other words, when law laid down by the Supreme Court is binding on all the…

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